Question

The par value per share of common stock represents ______. A. the minimum selling price of the stock established by the articles of incorporation B. the minimum amount the stockholder will receive when the corporation is liquidated C. the monetary amount assigned to each share of stock D. the amount of dividends per share to be received each year

Answer 1

Answer:  Option C  

 

Explanation: The par value refers to that value which is  stated in the corporate charter of the company. This can be understood as the real value of shares. The market value of shares differs from the par value depending on the performance of the company which have issued such shares.

This is also sometimes referred to as the legal capital.

Hence from the above we can conclude that the correct option is C.